Mayor to outline plan to close city’s more than $1 billion budget gap Thursday ahead of City Council meeting

CHICAGO — Mayor Brandon Johnson will outline his plan to close the city’s more than $1 billion budget shortfall for 2026 on Thursday morning, ahead of a full City Council meeting.

Some city leaders say everything should be on the table, including a property tax increase. More details are expected to be known when the mayor meets with reporters prior to his budget speech Thursday.

For a second straight year, Johnson and elected city leaders are trying to figure out a way to fill a giant hole in the city’s budget. They faced a nearly $1 billion gap in 2025, and it’s around $1.15 billion for 2026.

“Everything needs to be on the table, including property taxes, this time around,” Ald. Leni Manaa-Hoppenworth (48th Ward) said.

But property taxes are not expected to be part of the formula for this budget cycle. The mayor pitched a property tax hike last year, but City Council members unanimously rejected the $300 million dollar increase.

“There’s no will among taxpayers, or alders who are listening to taxpayers, to have a property tax increase when you have a mayor who is spending like an out-of-control person,” Ald. Scott Waguespack (32nd Ward) said.

Johnson has taken some steps to reduce spending by instituting a city hiring freeze and telling department heads to prepare for a 3% to 5% cut to their budgets. The mayor spoke about some of his budget proposal last week.

“I’m going to keep to my word,” he said. “I’m going to present a budget that challenges the ultra-rich to pay their fair share of taxes. I’m going to challenge that.”

Johnson is expected to propose reinstating the corporate head tax, under which essentially most businesses with 50 or more employees pay a fee for each of their workers. Former Mayor Rahm Emanuel eliminated that tax after a more than 40-year run in Chicago.

“It’s not a good idea when you have a mayor who’s anti-business from day one, and you’re basically saying, ‘We’re going to look for any way we can to tax your employees,'” Waguespack said.

“It really does a number on businesses that are existing, but it also says to new businesses, ‘Don’t come to Chicago.'”